BANGKOK- Thailand’s headline consumer price index (CPI) rose 5.02 percent in January from a year earlier, the slowest pace in nine months and below analyst forecasts, commerce ministry data showed on Monday.
The reading compared with a forecast for a 5.12 percent rise in January in a Reuters poll and followed December’s 5.89 percent increase. The core CPI index was up 3.04 percent in January from a year ago, versus a forecast rise of 3.10 percent.
Headline inflation is likely to be below 5 percent in February, helped by easing energy and food prices, senior commerce ministry official Wichanun Niwatjinda told a news conference.
Still, the pace remains well above the central bank’s target range of 1 percent to 3 percent, suggesting the central bank will raise its key interest rate further after hiking it at four consecutive meetings to try to bring prices back within target.
The central bank said previously that a continuing gradual rate rise is an appropriate course for a policy consistent with the growth and inflation outlook. It will next review policy on March 29.
The commerce ministry is sticking by its forecast for headline inflation at 2 percent to 3 percent this year, Wichanun said.
In 2022, headline CPI increased 6.08 percent, a 24-year high, while the core CPI index rose 2.51 percent.
Thailand’s economic recovery maintained its traction in December, boosted by increased tourism and domestic consumption, but exports were affected by the slowing economies of trading partners, the central bank said.
Economic activity was likely to improve steadily as the vital tourism sector gained momentum, the Bank of Thailand said in a statement, adding it would monitor the global economy, costs and China’s reopening.
Tourism has performed better than earlier expected as China reopened sooner than thought, Assistant BOT Governor Chayawadee Chai-Anant told a news conference.
Last week, the BOT raised its projections for foreign tourist arrivals to 25.5 million this year and 34 million next year, up from 22 million and 31.5 million, respectively. There were nearly 40 million visitors in pre-pandemic 2019. – Reuters
